Report: Brazil to issue panda bonds for the first time as early as next week, with the first tranche planned to reach RMB 5 billion

People familiar with the matter said Brazil is preparing its first panda bond issuance, which could launch as early as next week. Sources said Brazilian finance officials are currently in China finalizing details of the RMB-denominated bond issuance, which may launch after the presidential election concludes on Sunday. The Brazilian government seeks to raise about RMB 10 billion, with a first tranche of RMB 5 billion. The issuance will make Brazil the first Latin American sovereign issuer to enter China's panda bond market, and its pricing may establish a benchmark for Brazilian companies such as Vale. Vale is also considering issuing RMB-denominated bonds.